On 29 June 2018, the Financial Action Task Force (FATF), of which Singapore is a member, issued an updated Public Statement that highlights the strategic deficiencies in the anti-money laundering/combating the financing of terrorism (AML/CFT) regimes of the following jurisdictions:

• The FATF remains concerned by the Democratic People’s Republic of Korea (DPRK)’s failure to address the significant deficiencies in its AML/CFT regime and the serious threats they pose to the integrity of the international financial system. The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies. The FATF has serious concerns with the money laundering, terrorism financing and proliferation financing risks posed by DPRK’s illicit activities. DPRK is subject to the FATF’s call on countries to apply counter-measures and Financial Institutions (FIs) should give special attention to business relationships and transactions with links, whether directly or indirectly, to the DPRK. Countries and financial institutions are called to apply effective counter‑measures, targeted financial sanctions, and other measures in accordance with the applicable United Nations Security Council Resolutions (UNSCRs).  FIs in Singapore should also take into account the requirements in the MAS (Sanctions and Freezing of Assets of Persons – DPRK) Regulations 2016, and relevant guidance provided by MAS.

• In acknowledgement of Iran’s commitment to an Action Plan to address its strategic AML/CFT deficiencies, the FATF has suspended counter-measures since June 2016. Iran’s Action Plan has now expired with a majority of action items remaining incomplete.  The FATF is disappointed with Iran’s failure to implement its Action Plan to address its significant AML/CFT deficiencies. However, given the Iranian government’s continued efforts to finalise and pass amendments to its AML and CFT laws, the FATF decided in June 2018 to continue the suspension of counter-measures. The FATF urgently expects Iran to proceed swiftly in its reform path. Depending on Iran’s progress in completing its Action Plan, the FATF will decide upon appropriate and necessary actions in October 2018. The FATF remains concerned with the terrorism financing risk emanating from Iran and the threat this poses to the international financial system. Enhanced due diligence, proportionate to the risks, should therefore continue to be applied on business relationships and transactions with natural and legal persons from Iran.

Details of the FATF Statement can be found at:

http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/public-statement-june-2018.html

The FATF has also issued an updated statement on its on-going process to improve global AML/CFT compliance.  This statement provides information on a list of jurisdictions that have committed to action plans to address and strengthen their respective AML/CFT deficiencies, and would assist financial institutions and relevant non-financial institutions in your risk assessment and mitigation. 

The FATF Compliance statement can be found at:

http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/fatf-compliance-june-2018.html

Non-financial institutions that are subjected to AML/CFT requirements in Singapore are similarly advised to note the updated and new statements and take appropriate measures in accordance with your respective AML/CFT obligations.